TABLE OF CONTENTS 2020/2021 Overview > Brazil > TABLE OF CONTENTS GLOBAL INVESTMENTS 42 ARTERIS 61 Table of contents WITH OPERATIONS IN BRAZIL 38 VLI BROOK FIELD 60 SPECIAL INVESTMENTS SHOPPING CENTERS 34 QUANTUM 56 TEGRA 78 NTS LOGISTICS PARKS 30 52 OURO VERDE 74 ASCENTY ELERA OFFICE 26 BRK AMBIENTAL 70 48 64 RENOVÁVEIS 04 06 20 24 46 62 68 LETTER FROM BROOKFIELD BROOKFIELD INFRASTRUCTURE PRIVATE REAL THE CEO AROUND THE WORLD IN BRAZIL EQUITY RENEWABLE POWER ESTATE > > > 82 92 106 107 108 110 SUSTAINABLE ESG COMBINED COMBINED TEAM CORPORATE RESOURCES MANAGEMENT FINANCIAL RESULTS OFFICES INFORMATION INFORMATION 84 AGRICULTURE 94 ESG PRINCIPLES 88 TIMBERLANDS 98 ETHICAL CONDUCT 99 DIVERSITY AND INCLUSION 100 PRIVATE SOCIAL INVESTMENT 104 RESPONDING TO THE PANDEMIC TABLE OF CONTENTS LETTER FROM BROOKFIELD AROUND BROOKFIELD PRIVATE R EN EWA BLE REAL SUSTAINABLE ESG COMBINED FINANCIAL INFRASTRUCTURE THE CEO THE WORLD IN BRAZIL EQUITY POWER ESTATE RESOURCES MANAGEMENT INFORMATION 4 BROOKFIELD 2020/2021 LETTER FROM THE CEO 5 Letter from the CEO All in all, approximately BRL 11 billion was invested in “Over the course of 2020, we made To help reduce the spread of the coronavirus, Brookfield our businesses in 2020, with a further BRL 33 billion changes to our protocols and procedures and our portfolio companies engaged in philanthropic forecasted investment over the next three years. initiatives focused on several key projects. All in all, we across our portfolio companies to ensure donated more than BRL 32 million to hospitals, NGOs and Elera Renováveis, the new name for Brookfield Energia business continuity throughout the period, charitable institutions in various states. We also launched Renovável, reported results in line with plan, further a corporate 2:1 donation matching program to encourage introducing a number of measures to ensure demonstrating the resilience of the assets even under employees to participate. In all, a total of BRL 250,000 has adversity. The company is implementing a strategy the health and safety of our employees. been donated. focused on the decarbonization of the Brazilian energy With enhanced precautions in place, we were sector. For example, during the year, Elera added three Over the more than 100 years of our history, we believe the solar complexes to its portfolio under development, able to provide the uninterrupted delivery survival of our business depends on these core principles: with an equity investment of BRL 1.6 billion. Among of essential services to Brazilians, including ensuring the well-being and safety of our employees, these, the Janaúba project is set to be the largest solar maintaining strong relationships with the communities in farm in Latin America, representing an installed capacity water sanitation, natural gas transmission, which we operate, mitigating the impact of our operations > of 1.2 GW, enough to power 1.8 million houses. power generation and transmission, data on the environment, executing business transactions according to the highest ethical and legal standards, and transmission and logistics infrastructure.” In Infrastructure, our investment in logistics business, strictly adhering to globally-recognized ESG principles. We > VLI, benefited from being integrated with the supply continue to make progress in all these areas. and distribution of essential goods. In 2020, VLI 2020 was a year like no other. Despite both the health handled more than 40.8 billion tons per kilometer In Real Estate, high asset valuations in our business were Discussions around diversity and inclusion in the workplace, and economic challenges of the past year, our investment on its railways—an increase of 5% compared with instrumental in our ability to continue to pursue a strategy for example, have become a bigger focus − both in society philosophy continued to prove itself. Through this period, 2019. Another portfolio company—and a leader in the of capital recycling, divesting mature assets in order to and within our operations. And while there is always we delivered solid results across our business in Brazil. Our data center infrastructure sector in Latin America— reinvest in new projects. In 2020, we completed the sale more to do, we believe we are well placed to advance this net operating revenue was BRL 26.9 billion, an increase of Ascenty had the best year in its history, both in terms of three commercial buildings and are investing in new important agenda, both on global and domestic fronts. 12% compared with 2019, and EBITDA was up by 7.6% to of financial results and in terms of new construction, greenfield Triple-A office building projects in the city of BRL 14 billion. We ended 2020 with over BRL 120 billion reflecting the increase in demand for additional data São Paulo. We believe that demand for high-quality office In 2020, our compliance program continued to evolve, in assets under management, a year-on-year increase of centers. With 17 data centers in operation and five space in desirable regions of large metropolitan centers will adding even greater security to our operations. We approximately 17%. under construction in Brazil, Chile, and Mexico, the continue to increase as we see a flight to quality. Another renewed our membership of Ethos Institute’s Business company reported net operating revenue in 2020 that focus of our investments in 2020 was the expansion of our Pact for Integrity and Against Corruption, as part of our Over the course of 2020, we made changes to our was 49% higher than 2019. portfolio of logistics parks in strategic regions and integrated commitment to maintaining ethical business relationships protocols and procedures across our portfolio companies into major urban centers. The growth of these parks is and our zero-tolerance policy in relation to corruption. to ensure business continuity throughout the period, In Private Equity, I would highlight BRK Ambiental’s running parallel to the robust expansion of e-commerce, introducing a number of measures to ensure the health successful bid in the auction to supply water and which was turbocharged by the onset of the pandemic. This There have been many lessons from the past year. Despite and safety of our employees. With enhanced precautions sewage treatment services to about 1.5 million people is a trend that is likely to continue in the coming years. all the challenges, our results were solid. We adapted in place, we were able to provide the uninterrupted in the Maceió metro area, in the state of Alagoas. The to new ways of collaborating and became even more delivery of essential services to Brazilians, including New Legal Sanitation Framework, approved in 2020, The business faced some challenges during the pandemic, resilient—thanks to the support and dedication of all our water sanitation, natural gas transmission, power is an important step forward for the water sanitation most notably within our toll road operations in Brazil. employees. As vaccinations roll out in Brazil and around the generation and transmission, data transmission and business. With opportunities for new investments, During the months of the tightest restrictions on movement, world, we believe we’ll see a global economic recovery and logistics infrastructure. we will continue contributing to meeting the major traffic flows decreased significantly. However, the numbers the continued growth of our businesses, generating jobs challenge of providing universal water and sewage for the last few months of 2020 show us that these and further development in Brazil. We look forward to the Our assets were resilient and reported solid results, treatment services in Brazil − representing a critical operations are already showing signs of recovery, and we next few years with a sense of great optimism. proving out our strategy of investing in high-quality improvement in the socio-economic conditions and are optimistic that traffic flows will return to pre-pandemic businesses that form the backbone of the global economy. health of the population. levels before too long. HENRIQUE CARSALADE MARTINS TABLE OF CONTENTS LETTER FROM BROOKFIELD AROUND BROOKFIELD PRIVATE R EN EWA BLE REAL SUSTAINABLE ESG COMBINED FINANCIAL INFRASTRUCTURE THE CEO THE WORLD IN BRAZIL EQUITY POWER ESTATE RESOURCES MANAGEMENT INFORMATION ROOT S IN BR A ZIL A GLOBAL FOOTPRINT PORTFOLIO OF ASSETS UNDER MANAGEMENT COMPETITIVE ADVANTAGES INVESTMENT PRINCIPLES 6 BROOKFIELD 2020/2021 BROOKFIELD AROUND THE WORLD 7 Brookfield around the > World > With more than 120 years of experience and approximately 150,000 operating employees, Brookfield today is a leading global alternative asset manager, with more than US$ 600 billion in assets under management. It is among the largest investors in the world in commercial real estate, infrastructure, renewable power, private equity and credit. Today, Brookfield is an owner and operator of high-quality businesses across more than 30 countries, with access to large-scale, flexible capital and a long-term approach to investing. Its deep operational experience enables it to continue creating value for its assets and deliver solid returns to investors. TABLE OF CONTENTS LETTER FROM BROOKFIELD AROUND BROOKFIELD PRIVATE R EN EWA BLE REAL SUSTAINABLE ESG COMBINED FINANCIAL INFRASTRUCTURE THE CEO THE WORLD IN BRAZIL EQUITY POWER ESTATE RESOURCES MANAGEMENT INFORMATION ROOTS IN BRAZIL A GLOBAL FOOTPRINT PORTFOLIO OF ASSETS UNDER MANAGEMENT COMPETITIVE ADVANTAGES INVESTMENT PRINCIPLES 8 BROOKFIELD 2020/2021 Roots > in Brazil > Brookfield’s history began in Brazil in 1899 when a group of Canadian and Brazilian investors joined forces to establish the São Paulo Tramway, Light and Power Company, a company responsible for installing street lighting and electric-powered public transportation in the city of São Paulo. In 1901, the group unveiled the Parnaíba Power Plant, the first hydroelectric plant to supply electricity to the city of São Paulo. In 1905, it constituted the Rio de Janeiro Tramway, Light and Power Company, expanding its activities to Brazil’s capital as it was then.